Important Economic Trends During Anarchy – Week 17

2020 – Something Big is Afoot.  Are You Prepared?

November Will Start with Three Big Bangs:

Just when you think “What else can possibly happen this year?”, more bizarre events appear.

  1. Asteroid could hit Earth – Astrophysicist Neil deGrasse Tyson has announced that an asteroid known as 2018VP1 with a diameter the size of a refrigerator which is travelling at the speed of 25,000 mph is going to hit the planet Earth on November 2, 2020. Yes, the day before our election.  Somehow that is appropriate.  No details of where the impact will occur were given.  NASA says it will disintegrate before impact.  Apparently, NASA has not taken into account that this is the year of our Lord 2020, a year destined to be known in history books as the year that was Uniquely Totally Unbelievable Bizarre.  I am not a betting man, but this year I would bet lunch on the asteroid impacting Earth.
  2. Biden – What a sad story. Even though they are confirmed by two former partners of Hunter Biden, the Democratic loyal press is pretending that the emails and videos are unsubstantiated.  What is revealed by the emails and videos is:
    1. Scary – Obama, Biden, Kerry et al – approved the 2015 sale of an American company, Henniges Automotive (which produced critical parts for our F-35 fighter), to a Chinese joint venture in which Biden had ownership. Now it produces those parts for the Chinese Communist Party (CCP) owned company that builds fighter jets for the Chinese military.  No wonder the Chinese J-20 is equivalent to the F-35 and our American advantage is gone, gone, gone.
    2. More Scary – It has been reported that other emails show that Hunter Biden negotiated with Obama to allow the CCP to militarize the South China Sea in return for a $1 Billion “tip”. THAT WOULD EXPLAIN THE SOFT COUP AGAINST TRUMP.
    3. Sick videos and emails – Hunter Biden and that entire family deserve our prayers if the emails and videos of sex abuse, drug abuse, and incest are correct.
  3. Election Day in the USA – If on November 4 there is a decision who will be President, some folks will be unhappy.  A rational person would assume that only if Trump wins will the Protesters, Rioters, and Vandals (PRVs) take to the street to destroy cities.

Are there any statues left?  PRVs have really nailed how to rip down a statue.  Practice does make perfect.  Did they create a website to pass along their expertise.  Maybe they held practice sessions, assigned roles, and designed different “plays”.  My mother always told me that everyone had to be good at something.  Obviously, not all are positives.

With the massive resignations and retirements of police around the country, many large cities are ordering all of their remaining police to show up in uniform starting October 25.   They are expecting the PRVs regardless of who wins.  Perhaps the PRVs will be “Celebrating” a Biden win but “Raising Hell” with a Trump win.  With their practice this year, those PRVs have gotten really good at raising hell.  Karl Marx, Lenin, George Soros, Democrats, and Chinese President Xi must all be proud of their PRVs.

Regarding the alleged fortune the Bidens’ received from the Chinese, Ukrainians, et al the Biden Campaign defense is that they released Joe Biden’s tax forms which ignores that tax forms only reflect REPORTED INCOME not the value of partnerships created until those assets are sold.  There can be a huge difference between Net Worth and Taxable Income.

One has to give credit to Biden’s campaign for creativity when they listed the tens of millions of Dollars as “speaking fees”. That is a contrast with the famous quote of Franklin Roosevelt’s first Vice President that “A Vice President is worth the equivalent of a jar of warm spit”.  Is Biden’s spit worth Millions of Dollars?  Sorry, put me in the “No” column.

The one absolute in the 2020 election is that a Biden win will complete the cover up of whatever occurred during the Obama administration that resulted in lots of officials getting wealthy.  We have seen the endless delays of the bureaucracies in producing material much less pursuing the facts about laptops, etc.  Are you surprised at how many of the Obama Administration officials now have reported financial net worth in the range of $100 Million?

From my study of Organizational Behavior in graduate school, I am aware that group think is a real and a strong force in every organization.  After watching the Clintons amass a fortune from their public office, it is logical that the Obama Administration became a competition to see who could sell the most to become personally wealthy.  Is treason described by both the Uranium One deal that netted the Clinton Foundation $100 Million and however many Millions of Dollars came to Bidens’ pockets from the Henniges Automotive deal?

But the seriousness of those “deals” pales compared to the alleged Chinese $1 Billion “tip” to Obama to allow the militarization of the South China Sea.  That could explain why a soft coup looked appealing to any participants.  The complete facts about any deals done by the Obama Biden Kerry Clinton Administration needs to be brought out into the public and resolved so it does not occur again.   EVER.

The last week before the election started off with a sharp decline in the stock markets.  The talking heads are trying to decide if it is the result of Wuhan Virus infections increasing or the Pelosi Stimulus Charade finally being recognized as just another of her political head fakes.  In light of the Biden disclosures, my guess is that the stock market was looking at the impact of corporate exits from China.

Dominated and therefore distorted by The Fed, the bond market is only good for discerning the activity of The Fed and perhaps some direction of the economy.  The stock market is a financial market driven by investors, but it is FULLY valued.  That is why Pelosi’s head fake about stimulus has been having an impact.  Other forces the stock market is weighing:

  1. China’s economic recovery – Although copper is sending a bullish signal, my read is that China’s recovery is fragile. President Xi has all but abandoned the shift to focusing on the internal consumer driven market.  That transition would require the diminishing of the State Owned Enterprises (SOE) which dominate China and are the source of great wealth for the five controlling families of the Chinese Communist Party.  That is not happening.
  2. China’s Stock and Bond Markets – Recently, Chinese companies have shifted their registrations from Wall Street to Shanghai or Hong Kong. The Chinese stock and bond markets do not have pesky western rules about accurate accounting.   This year China’s credit rating firms have increased the number of AAA ratings of Chinese companies despite the pandemic and their increased borrowing.  Perhaps the Chinese consumer will speculate on something other than residential condominiums.  Unregulated markets are the equivalent of the wild west with no sheriff.  A collapse is coming.
  3. The USA Election – The stock market it trying to discern who is going to win the election, Trump or Biden, because the economic outcome is quite different. The polls say that Biden is elected get ready for higher taxes but rally attendance suggest the opposite.  How do you discount the fraud that will occur?  With Pennsylvania saying that ballots received three days after the election even if there is no postmark or if the postmark is after November 3rd  are valid…the dead will be jumping the fences of the cemeteries to vote. Maybe the stock market can figure it out, but I must wait.

We are sharing with clients that we are living in an economic “Bubble” created by the historic stimulus already coursing its way through our economy.  It will take six months or a year for Biden’s Administration to raise taxes including almost doubling the Capital Gains Tax Rate.  Tax rates in some states will exceed 60%.  Once those new tax rates are passed, this Bubble will burst leading to a serious economic downturn and sharply lower real estate prices.

Per our data bases, in central Virginia the land market is active but price sensitive.  The residential land market is red hot because The Fed is forcing mortgage rates below 3%.  The Fed wants to force investors to spend their cash rather than hold it in savings accounts.  But cash on hand has increased from $4 Tn to $5.9 Tn.  Some investors are “chasing yield” but “creative” investments that occur at this part of the cycle usually look stupid later.  Stick to the basics.

“Beloved, never avenge yourselves, but leave room for the wrath of God; for it is written, “Vengeance is mine, I will repay, says the Lord”.”

(Romans 12:18   New Revised Standard Version, Oxford University Press)

Capitalism builds wealth, socialism consumes it in self destruction.  I serve an awesome God.  With God on our side, who can stand against us.  Pray.  Hard.

Stay healthy,

Ned

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